Investment bank EFG Hermes said January had seen $1 billion of net foreign fund inflows into Middle Eastern and North African equities, the highest since April 2015. Saudi Arabia has had the biggest share, $703 million.

In commodities, oil prices also rose on Tuesday, in line with global markets, as OPEC said on Monday it expected world oil demand to climb by 1.59 million barrels per day (bpd) this year, an increase of 60,000 bpd from the previous forecast, reaching 98.6 million bpd.

U.S. West Texas Intermediate (WTI) crude futures were at $59.44 a barrel at 0103 GMT. That was up 15 cents, or 0.25 percent, from their last settlement.

Brent crude futures were at $62.78 per barrel, up 19 cents, or 0.3 percent, from the previous close.

In currencies, the dollar was weak on Tuesday as risk appetite was back on equity markets and investors waited for U.S. inflation data for clues on the pace of interest rate hikes.

Gold prices held firm on Tuesday on a weaker dollar. Spot gold was at $1,322.82 an ounce, as of 0234 GMT.

In other news, Egypt’s central bank data showed that average yields on Egypt's five- and 10-year treasury bonds fell at an auction on Monday.

For access to market moving insight, subscribe to the Trading Middle East newsletter by clicking here